The uncertainty of Brexit has put panic into British businesses and is halting many brands from pursuing their European expansion dreams. We’re all in the same boat – the political turmoil is forcing SMEs to question: should we wait and see what happens next, or take a chance on the unknown?
Withdrawing relations with the EU will of course bring new logistical challenges to British companies, from dispatch and delivery impediments to cost implications of WTO export tariffs.
But we can’t afford to let Brexit slow down growth plans, particularly in the technology sector which is developing at such a fast pace. Waiting a couple of years will be too late and could have a detrimental impact on the longterm growth of businesses overseas. By the time we’ve worked out all the T&Cs of Brexit, the European technology market will be saturated with competitors before you’ve even stepped foot on EU soil.
Working side by side
One way to ensure success is by looking to your partner network. Collaborating with tech giants can help smaller brands to endure the Brexit storm and benefit from the halo effect these brands have.
Taking Lightwave as an example, we worked directly with Apple on each and every element of our European expansion. We carefully cooperated on product and packaging design, in-store and online retail space as well as distribution. Collaborating with one of the world’s biggest tech and retail brands when entering a market certainly has its merits, as such businesses have established distribution and retail footprints within the territory, which is invaluable to businesses entering new markets.
While startups and SMEs can be agile and adapt quickly to changing plans, the ability to scale resource and production timelines in order to meet the fast pace of tech giants can present a challenge. It’s crucial for brands to be realistic when assessing output capabilities so your business is able to meet demand.
Creating a local proposition
Understanding and getting to know your new customer base by acquainting yourself with individual quirks and demands of each European country is an essential starting point to building market preference and brand confidence.
Lightwave’s products are retrofitted into homes, so we had to understand the local housing market in our key European territories. Buying behaviours throughout a lot of Europe differ to that of the UK, with many people opting to rent rather than buy. This is why we adapted our messaging for different markets.
Being brave in the face of Brexit
It is fundamental that brands look to expand beyond the borders of Britain in spite of Brexit delays. With ongoing trade discussions, SMEs need to challenge themselves to be bold and reap the rewards of expanding beyond the British border.
Now is as good a time as any for British tech brands to drive growth in Europe and open the door to new revenue streams. In turn, this will help the UK to maintain its position as a tech innovator and leader in the space.
Jason Elliott, CEO for Lightwave
